Robinhood has added new limits to its app to limit customers from shopping for or buying and selling any of the favored Reddit r/WallStreetBets stocks, together with GameStop ($GME), AMC ($AMC), BlackBerry ($BB), Mattress Bathtub & Past ($BBBY), Nokia ($NOK), and extra. Customers will nonetheless be allowed to shut out current positions however gained’t be capable to purchase extra of the shares. The corporate is citing “latest volatility” available in the market because the reasoning behind the change.
We repeatedly monitor the markets and make modifications the place essential. In mild of latest volatility, we’re proscribing transactions for sure securities to place closing solely, together with $AMC, $BB, $BBBY, $EXPR, $GME, $KOSS, $NAKD and $NOK. We additionally raised margin necessities for sure securities.
The event is the most recent within the ongoing saga that has seen a gaggle of Reddit customers from throughout the web band collectively in an effort to drive up the inventory costs of firms like GameStop and BlackBerry, in defiance of conventional hedge funds that had shorted these companies. Robinhood — a well-liked inventory market software that enables beginner day merchants to buy these shares with out charges — has been a key device within the Reddit group’s potential to push the costs up.